Toyota has stated it will build a new factory in Canada instead of the US because of concerns US workers are less skilled. If we can't beat Canada maybe the US auto industry should pack it in. However, despite this we will continue to buy Toyotas. Toyota probably has nothing but contempt for Americans.
The article is quoted below.
"New President of Toyota Motor Corp. Katsuaki Watanabe said that the automaker plans to build a new plant in Canada. (AP/Shizuo Kambayashi)
STEVE ERWIN
WOODSTOCK, Ont. (CP) - Ontario workers are well-trained.
That simple explanation was cited as a main reason why Toyota turned its back on hundreds of millions of dollars in subsidies offered from several American states in favour of building a second Ontario plant.
Industry experts say Ontarians are easier and cheaper to train - helping make it more cost-efficient to train workers when the new Woodstock plant opens in 2008, 40 kilometres away from its skilled workforce in Cambridge.
"The level of the workforce in general is so high that the training program you need for people, even for people who have not worked in a Toyota plant before, is minimal compared to what you have to go through in the southeastern United States," said Gerry Fedchun, president of the Automotive Parts Manufacturers' Association, whose members will see increased business with the new plant.
Acknowledging it was the "worst-kept secret" throughout Ontario's automotive industry, Toyota confirmed months of speculation Thursday by announcing plans to build a 1,300-worker factory in the southwestern Ontario city.
"Welcome to Woodstock - that's something I've been waiting a long time to say," Ray Tanguay, president of Toyota Motor Manufacturing Canada, told hundreds gathered at a high school gymnasium.
The plant will produce the RAV-4, dubbed by some as a "mini sport-utility vehicle" that Toyota currently makes only in Japan. It plans to build 100,000 vehicles annually.
The factory will cost $800 million to build, with the federal and provincial governments kicking in $125 million of that to help cover research, training and infrastructure costs.
Several U.S. states were reportedly prepared to offer more than double that amount of subsidy. But Fedchun said much of that extra money would have been eaten away by higher training costs than are necessary for the Woodstock project.
He said Nissan and Honda have encountered difficulties getting new plants up to full production in recent years in Mississippi and Alabama due to an untrained - and often illiterate - workforce. In Alabama, trainers had to use "pictorials" to teach some illiterate workers how to use high-tech plant equipment.
"The educational level and the skill level of the people down there is so much lower than it is in Ontario," Fedchun said.
In addition to lower training costs, Canadian workers are also $4 to $5 cheaper to employ partly thanks to the taxpayer-funded health-care system in Canada, said federal Industry Minister David Emmerson.
"Most people don't think of our health-care system as being a competitive advantage," he said.
Tanguay said Toyota's decision on where to build its seventh North American plant was "not only about money."
"It's about being in the right place," he said, noting the company can rely on the expertise of experienced Cambridge workers to help get Woodstock up and running.
Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed $400 million, including the latest Toyota package, to the province's auto sector, which helped finance $5-billion worth of industry projects.
"I think that's a great investment that will more than pay for itself in terms of new jobs and new economic returns," McGuinty said.
The provincial funds for the auto sector were drawn from a fund set up to attract investments specifically in that industry. McGuinty said no similar industry funds are being planned for other sectors, but added the province wants to attract biotechnology companies - those working on multibillion-dollar advanced medical research.
"What we have done for auto we would like to be able to do for biotech," he said. "That's where we're lending some real focus to at the present time."
Similarly, Emmerson said Ottawa is looking to help out industries that create "clusters" of jobs around them - such as in aerospace, shipbuilding, telecommunications and forestry - where supply bases build around a large manufacturer."
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Well you have to think about this austin the Southeast area does have some Stupid people not to mention unskilled labor and Both Nissan and Merceades benz would know having there stake at hand in this area. Merceades Plant in Alabama and Nissans Plant in Canton Mississippi would provide hint's to Quality control On these factorys vs the ones In there home land country germany and Japen) ..
Toyota is building A Plant in your area (Texas) which I am sure your aware on so Toyota does very much reaseach it's thought process on building plant's that have a direct impact on there company as a wole..
Not to be insulting Tundrav8georgia, please read what you wrote, your in college?
Quote:
Originally Posted by TUNDRAV8GEORGIA
Well you have to think about this austin the Southeast area does have some Stupid people not to mention unskilled labor and Both Nissan and Merceades benz would know having there stake at hand in this area. Merceades Plant in Alabama and Nissans Plant in Canton Mississippi would provide hint's to Quality control On these factorys vs the ones In there home land country germany and Japen) ..
Toyota is building A Plant in your area (Texas) which I am sure your aware on so Toyota does very much reaseach it's thought process on building plant's that have a direct impact on there company as a wole..
Toyota is doing the right thing. If you get unskilled people to work on Toyota vehicles and down the line they began to fall apart like Ford, Dodge or GMC. Who's going to buy a Toyota then? Toyota is definitely taking over the auto market every year and if they want to continue to be the best. Why risk it and let unskilled people ruin the Toyota reputation?
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I say "good for Toyota." If the Canucks are more skilled than Alabamans and Mississippians, then go for it. It's cheaper to build there, they claim that the workers are more skilled, and they'll only be producing the Rav-4 there anyway. The Tundra will be produced in "Truck Country" for a long time.
I've even heard from Dodge Ram guys that the Rams which were built in Mexico have less problems than the Rams built anywhere else. Surprising, but maybe it has some merit.
Well when I read this all I think is, wow Canada has its crap together and is attracting good companies and actively trying to attract money.
Here in Cali. and I am sure other places it seems we are chasing it away with higher costs more taxes less benefits and more. So I guess it is time for the US to step up and get some money making companies in here and treat them like they have some benefit. Granted we have many large corporations but we can have more and that would privide more for all.
OH and Lets not pick on peoples typin sKilz. I iz a colage gradeiate an eye made zume misteekz nouw ande den
__________________ '05 Tundra DC TRD 2 WHL: The TOW truck, Spectra Mica Blue, with Kenwood H/U, Kenwood Amp and crossover. Infinity 6010cs, 10" Rockford SUB, 6 disc CD Changer mounted in Center console, SWI-X to retain steering wheel controls, 7" TV with DVD. Tinted Windows, Three chamber Flowmaster, Painted front chrome strip
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I'm glad I wasn't the only one who thought that........
yep I sure am and I don't care what you people think either how's that for your apples ....
Side note I have a slight case of Dyslexia too so watch what you say. Many people allready know that but in case you want to judge a person based on how they write might need to evulate yourself and see who is doing the judging . I think i've done pretty well for myself attending College part time and working full time glad you took the time to read my profile maybe you might to know me in person before you can make rude post like the one you started
Being from Alabama I can say we have some incredibly stupid people here, but in saying that I'm sure that everywhere else has there share too. My original home town is probably no more than 15 miles from the Honda plant. The plant brought a lot of jobs to our area. The people who filled those jobs ranged from rather unintelligent to very astute. I know of several people who left their jobs to work at Honda simply because Honda paid more. The plant pays very well for our region for the amount of education required. I'm not saying that training was not difficult for the work force in our area. We have very few industrial jobs where I'm from and for most people it was a new thing. I do think that the whole using pictures to train illiterate workers would be very rare.
I currently live probably 15 miles from the Mercedes plant. I don't know anyone who works there, but I do know that the plant did have a huge impact on the local economy. The University Police have several, several Mercedes M class' to drive around in. I would think that the work force for Mercedes would be very similar to Honda's. I do know however that nearly all engineers employed at the Mercedes plant are German. (Being an engineering student that wants to work in the automotive field that is not a good thing for me.) Through this long rant the point I'm trying to get at is I seriously doubt that South Eastern U.S. employees are harder to train than any other region of the country or world given their circumstances. Granted citizens of a more industrial regions may be easier to train. That may be the case in Canada and if so go ahead Toyota, but I don't think they should base their reasons on people in the south being illiterate.
Being from Alabama I can say we have some incredibly stupid people here, but in saying that I'm sure that everywhere else has there share too. My original home town is probably no more than 15 miles from the Honda plant. The plant brought a lot of jobs to our area. The people who filled those jobs ranged from rather unintelligent to very astute. I know of several people who left their jobs to work at Honda simply because Honda paid more. The plant pays very well for our region for the amount of education required. I'm not saying that training was not difficult for the work force in our area. We have very few industrial jobs where I'm from and for most people it was a new thing. I do think that the whole using pictures to train illiterate workers would be very rare.
I currently live probably 15 miles from the Mercedes plant. I don't know anyone who works there, but I do know that the plant did have a huge impact on the local economy. The University Police have several, several Mercedes M class' to drive around in. I would think that the work force for Mercedes would be very similar to Honda's. I do know however that nearly all engineers employed at the Mercedes plant are German. (Being an engineering student that wants to work in the automotive field that is not a good thing for me.) Through this long rant the point I'm trying to get at is I seriously doubt that South Eastern U.S. employees are harder to train than any other region of the country or world given their circumstances. Granted citizens of a more industrial regions may be easier to train. That may be the case in Canada and if so go ahead Toyota, but I don't think they should base their reasons on people in the south being illiterate.
you have some good point's thank's for your insite...
Not to be insulting Tundrav8georgia, please read what you wrote, your in college?
I believe it's "you're in college?"
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Toyota has stated it will build a new factory in Canada instead of the US because of concerns US workers are less skilled. If we can't beat Canada maybe the US auto industry should pack it in.
Perhaps a Canadian perspective . . .
Canadians are NOT inherently more capable (big surprise there!). We simply subsidize education to the point that an average worker has FAR too much education for the job they will likely fill. University (college has another meaning here) has become a mere extension to high school - a given life course, a birthright if you like. There are University Grads flipping burgers and driving taxis for permanent work (both noble professions if that's your bent). Waste of education dollars IMO.
Our middle class has been crushed out of existence (insert anti-left wing liberal/democrat rant here) - hence the ready pool of "qualified" workers for Toyota to draw on.
Be thankful you live in a country that still values higher education, rewards those that strive to be "a little better". Yes, this does mean that there will be lots of workers BELOW average on the curve - that's how it works!
Be thankful you live in a country that still values higher education, rewards those that strive to be "a little better". Yes, this does mean that there will be lots of workers BELOW average on the curve - that's how it works!
Lost in the herd,
Paul
Well not to much anymore. I have a BS in High tech management and was out of school for 2.5 years and could not get a job. I worked in the auto industry until I found the job I am at. It is an order admin position and in NO way uses my education. I took this job as a stepping stone but it barely pays the bills and school loans and so on.
__________________ '05 Tundra DC TRD 2 WHL: The TOW truck, Spectra Mica Blue, with Kenwood H/U, Kenwood Amp and crossover. Infinity 6010cs, 10" Rockford SUB, 6 disc CD Changer mounted in Center console, SWI-X to retain steering wheel controls, 7" TV with DVD. Tinted Windows, Three chamber Flowmaster, Painted front chrome strip
1994 Toy: The TOY Standard cab, Long travel front pulling13" w/Double fox w/Res, Deaver rear at 18" w/Single 2.5 18" fox w/Res., full glass, Bumper to Bumper cage, Gusseted frame, PRP seats, Crow harnesses, Custom steering(All Heims & Chromoly), Grant steering wheel, Smoothest ride around. OH by the way only 70,000 miles.
I am not a college graduate, but I do not consider myself stupid either. I am from Birmingham, Alabama and currently live in south Alabama. I work at a nuclear plant there. I am a licensed nuclear plant operator which is a program administered by the Nuclear Regulatory Commission. It is an 18 month course which flunks out both the people who came up through the ranks and many more engineers than people that came up through the ranks like me. Coming from an industrial back ground in the deep south, I have a different view entirely. I believe it has nothing to do with your education level, but rather the fact theat there are many young people that were not raised on a farm or ever put a wrench to a car. We have a hard time finding people who know what basic tools are. I'm talking wrenches, pipe wrenches, phillips head screwdrivers and so on. Farm kids had to work on tractors and all sorts of farm implements and usually do well in our training programs. People who worked on their own cars and took shop type classes do well in our programs. People who may be very bright but have never touched a tool do not do well. We had one trainee who didn't know the difference between a pump and a motor. So I put it to you that it may not be a lack of education, but rather a lack of hands on experience. The college bound kids do not want to even think about doing something as disgusting as manual labor. The people that are not college bound just don't have the experience with tools and such. Too many video games.
Toyota thinks Canada is better than Southern USA?
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